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masha68 [24]
3 years ago
9

What is moral hazard? It refers to the actions people take before they enter into a transaction so as to mislead the other party

to the transaction. It refers to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off. It refers to the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction. It refers to the private, self-interested actions that people pursue, which when taken collectively leads to a loss in economic surplus.
Business
1 answer:
algol133 years ago
5 0

Answer: Option (a) is correct.

Explanation:

Moral hazard is a type of risk that one of the party has not entered into the agreement with a good intention. Also, they may provide incorrect or misleading information about them to take an advantage from acting opposite to the laid principles.

These type of activities mostly occurred in the lending and insurance industries where defaulters were not provided the true information about their work and business.

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3 years ago
A contract or ________ stipulates in writing all the client's requirements and gives all of the relevant information.
Scrat [10]

It should be noted that contract or event profile is usually stipulated in writing all the client's requirements and gives all of the relevant information.

An event profile can be regarded as set of event scripts, which helps to give description about an event.

This profile or contract do list out all the requirements that is needed by a company from the client in executing their services.

Therefore, contract or event profile serves  all the client's requirements and gives all of the relevant information.

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7 0
2 years ago
Crawford Fishing had a net income of $35,640 in 2017. They decided to pay $3,000 in dividends and keep the rest to help expand t
CaHeK987 [17]

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The profit that they keep to reinvest in the business is recorded as  D : retained earnings.

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Retained earnings (RE) is the amount of net income left over for the business after it has paid out dividends to its shareholders.

4 0
3 years ago
Suppose your roommate just invented an electronic pencil that senses when a word being written is misspelled, beeps, and shows t
irakobra [83]

The need that the electronic pencil fill is the need to erase errors associated with what has been written down digitally.

<h3>What is the potential market for the product?</h3>

The potential market  for electronic pencil is the global digital pen market and the global market as a whole.

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The type of consumer good  of electronic pencil product is Specialty products.

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<h3> What are the other questions that need to be answered before a decision is made?</h3>
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7 0
1 year ago
Countries are interconnected today as never before. From eating foods from different countries to singing along to songs perform
Nuetrik [128]
This is tough to answer in 3-5 sentences, and tends to also be a heavy identifier of your possible political leanings.  You'll have to apologize if some of mine leak out in the response, but this is a question we debate hotly more frequently than every 4 years.

In general, international trade can help increase the GDP and overall profits for US-based corporations.  However, if all we do is export, and we don't import, other countries don't look favorably upon that and may heavily tax our goods to counter this.

I believe we do need to be thoughtful about the amounts and kinds of international trade that we engage in.  For example, farming is always a hotly debated issue for international trade, in part because farmers in other countries with a dramatically lower cost of living OR farmers in countries with a favorable currency rate (exchange from their currency to our dollars gives them an advantage) can undercut our farmers here in the US, many of whom are already struggling.

There are also those who are worried that when we import produce from countries that have not outlawed pesticides we know are carcinogenic, for instance, this creates not only a disadvantage for US farmers, but also for consumers who may be concerned about health issues.

As another example of this, many countries outlawed import of US beef during the Mad Cow Epidemic.  We in turn also placed bans on importing beef from the UK.  

These are examples of why it's important to be thoughtful about trade, but there are certainly many others, including decline in production jobs within the US that have left cities like Detroit a ghost town (this was formerly the hub of our automotive industry production).
5 0
3 years ago
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